Rating Overview and Context
On 12 August 2025, MarketsMOJO revised the rating for Amines & Plasticizers Ltd from Sell to Strong Sell, reflecting a significant deterioration in the company’s overall outlook. The Mojo Score dropped sharply by 19 points, from 42 to 23, signalling heightened concerns about the stock’s prospects. This Strong Sell rating indicates that the stock is expected to underperform the broader market and is considered a high-risk investment at present.
It is important to note that while the rating change occurred in August 2025, the detailed analysis below is based on the latest available data as of 03 February 2026. This ensures investors have a clear understanding of the company’s current financial health and market position rather than relying solely on historical data from the rating change date.
Here’s How Amines & Plasticizers Ltd Looks Today
As of 03 February 2026, Amines & Plasticizers Ltd remains a microcap player in the Commodity Chemicals sector, facing considerable challenges across multiple dimensions. The company’s financial and technical indicators collectively justify the Strong Sell rating, as detailed below.
Quality Assessment
The company’s quality grade is assessed as average, reflecting moderate operational efficiency but limited growth momentum. Over the past five years, net sales have grown at an annualised rate of 10.54%, while operating profit has expanded at a slower pace of 4.36%. This indicates subdued profitability growth relative to sales expansion, suggesting margin pressures or rising costs.
Moreover, the latest quarterly results for September 2025 reveal a concerning decline in key metrics. Profit After Tax (PAT) stood at ₹6.17 crores, down 38.0% compared to the average of the previous four quarters. Net sales for the quarter fell by 19.7% to ₹133.14 crores, and PBDIT reached a low of ₹10.79 crores. These figures highlight operational headwinds and weakening earnings quality.
Valuation Considerations
Despite the negative earnings trend, the stock is currently valued as expensive. The company trades at a Price to Book Value (P/BV) of 3.3, which is high given its financial performance and sector peers. Return on Equity (ROE) stands at 13.4%, which, while positive, does not fully justify the premium valuation.
Interestingly, the stock is trading at a discount relative to its peers’ historical valuations, suggesting some market scepticism. However, this discount has not translated into positive returns for investors, as the stock has underperformed significantly over the past year.
Financial Trend and Returns
The financial trend for Amines & Plasticizers Ltd is negative. Over the last year, the stock has delivered a total return of -39.76%, markedly underperforming the BSE500 index, which generated a positive return of 9.19% during the same period. This stark contrast underscores the stock’s weak market sentiment and poor performance relative to the broader market.
Profitability has also deteriorated, with profits falling by 12.3% over the past year. The company’s inability to sustain earnings growth amid declining sales and operating profit margins raises concerns about its medium-term viability.
Technical Outlook
From a technical perspective, the stock is rated bearish. Recent price movements show volatility, with a one-day gain of 6.33% on 03 February 2026, but this short-term uptick is overshadowed by longer-term declines: -1.26% over one week, -11.96% over one month, and -24.02% over six months. The persistent downtrend suggests weak investor confidence and limited buying interest.
Additionally, domestic mutual funds hold no stake in the company, which may reflect their cautious stance given the stock’s valuation and financial challenges. Institutional absence often signals a lack of conviction in the company’s prospects among professional investors.
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Implications for Investors
The Strong Sell rating on Amines & Plasticizers Ltd signals that investors should exercise caution. The combination of average quality, expensive valuation, negative financial trends, and bearish technicals suggests that the stock is likely to continue underperforming in the near term.
Investors seeking exposure to the Commodity Chemicals sector may find better risk-adjusted opportunities elsewhere, given the company’s current challenges. The absence of institutional backing and the stock’s poor relative performance further reinforce the need for prudence.
For those holding the stock, it may be prudent to reassess their positions in light of the deteriorating fundamentals and market sentiment. New investors are generally advised to avoid initiating positions until there is clear evidence of a turnaround in the company’s financial health and technical outlook.
Summary
In summary, Amines & Plasticizers Ltd’s Strong Sell rating reflects a comprehensive assessment of its current state as of 03 February 2026. The company faces significant headwinds in profitability, valuation, and market sentiment, which collectively justify a cautious stance. While short-term price movements may occasionally offer relief, the prevailing indicators suggest continued challenges ahead.
Investors should closely monitor upcoming quarterly results and sector developments to gauge any potential shifts in the company’s outlook. Until then, the Strong Sell rating remains a clear signal to approach this stock with caution.
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